FX Handover: Weak Data And Dovish Forecasts Weigh On AUD and NZD
- NZ PMI is close to contraction and internal indicators hint at recessionary pressures ahead for New Zealand. A business conditions index by Morgan Stanley sees its largest drop on record to its most pessimistic level since 2008.
- NAB now call for 3 RBA cuts in 2019, RBC and Maquarie lower forecasts for RBA to cut to 0.5%. AU10 year hits fresh record low of 1.37%, AUD/JPY hones in on the July ’16 low.
NZD and AUD are the weakest majors today on weaker domestic data, JPY and CHF are the strongest on a slight risk-off tone. NZD/JPY is today’s biggest mover, shedding -0.6% at the low and hittig its typical daily range.
- UK agrees with US assesment that Iran is to blamce for shipping attacks in Gulf Of Oman. US military says it has ‘no interest in engaging in a new conflict of the middle east’, yet also stating they’re ‘ready to defend US interests…’. WTI finds stability above $52 after yesterday’s oil price spikes.